Value Relevance of Accounting Information during IFRS Convergence Process and Indonesia

In value-related literature there are two basic types of valuation models that have been widely used in previous studies. The price model tests how the market value of the company relates to accounting income and the carrying amount of capital. Based on Ohlson (1995), the model expresses the value of the company as a function of its revenue and the carrying amount of the capital, as shown in Equation 1. Another value-related valuation model is a return model. This represents the relationship between stock returns and accounting returns. The value relevance of the use of accounting information research related to revenue - revenue was promoted by groundbreaking research at Ball and Brown (1968).

One of the main pressures for US GAAP to integrate with IFRS is the global need to improve comparability and credibility of accounting information. According to Bradshaw and Miller (2007), standardization between US GAAP and IFRS will lead to improved comparability of accounting information in various economic and political environments. Using the international accounting system, you can test the economic consequences of financial reporting in various countries. This can lead to reduced information asymmetry (Soderstrom et al., 2007). In addition, coordination of the two systems tends to achieve higher accounting information quality by identifying the value relevance of revenue and timely loss (Barth et al., 2006). Liang et al.

Satisfaction with IFRS / GAAP integration of whether it is necessary to use accounting methods of GAAP or International Financial Reporting Standards (IFRS) and whether it is necessary to use General Accounting Principles (GAAP) or International Finance Partial Analysis Reporting Standards (IFRS) for Impact on Analysis How accounting methods and IFRS / GAAP integration need to use GAAP or International Financial Reporting Standards (IFRS) accounting methods, and IFRS / GAAP integration to you ACC 557 Student version 1128 (1200 5-8-2013) Final that will influence analysis of how it affects